The EUR/USD pair has fallen initially on Friday only to turn around and show signs of support again. By doing so, this is a very positive turn of events, as the 1.13 level continues to offer a bit of support. Beyond that, we have a lot of noise in this area previously, so I do think that it makes sense that this pair would rally a bit. In general, I believe that the 1.13 level is an area where there is a lot of demand, just as I see a lot of supply near the 1.15 level above.
EUR/USD Video 11.02.19
Looking at this chart, it makes sense that the market is essentially going sideways in general, because the Federal Reserve is starting to look very dovish, but at the same time we have a lot of lackluster economic figures coming out of the European Union. In other words, both of the central banks are going to be dovish for the foreseeable future. With that, I suspect that the market will continue to be difficult to trade from a longer-term perspective, but if you are patient enough to pay attention to these couple of major levels, you then have the ability to profit from this type of action. That being the case, I am bullish for the next couple of days, only to see exhaustion above and perhaps sell. Longer-term, I do think we break out to the upside.
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This article was originally posted on FX Empire
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